The short answer to your question is yes, you can get a good soundstage in a small room. To accomplish this you need to pay close attention to room treatment. Most dynamic speakers can work well close to the side wall if the first reflection points are well damped. Damp the wall behind the speakers as well, and maybe the ceiling at the first reflection point. Carpet the floor. Add some diffusion behind the listening position using furniture and plants. Once that's taken care of, careful speaker placement will give you rest of it.
My sound room isn't much larger than yours - it's 12x19. I use a pair of really big speakers - Coincident Total Victories - set up on the short wall. The speakers are about 1.5 feet from the side walls, and the front face of the speakers is about 4.5 feet from the front wall. the speakers are toed in so there is about 7 feet betweeen the center of the tweeters. I listen about 7 feet from the speakers.
Given this setup I get a measured flat response (+/- 2db) all the way down, and the soundstage is one of the best I've heard.
My sound room isn't much larger than yours - it's 12x19. I use a pair of really big speakers - Coincident Total Victories - set up on the short wall. The speakers are about 1.5 feet from the side walls, and the front face of the speakers is about 4.5 feet from the front wall. the speakers are toed in so there is about 7 feet betweeen the center of the tweeters. I listen about 7 feet from the speakers.
Given this setup I get a measured flat response (+/- 2db) all the way down, and the soundstage is one of the best I've heard.